Why do I need a pension?

It’s never too early to plan for the future.

You may be near the start of your working life where retirement seems a long way ahead, or retirement may be close. Whatever stage you’re at, and whatever your retirement plans are, you will need a regular income to help support you after you finish work.

To help make sure you have a secure retirement, you need to consider ways of building for your future and think about saving sooner rather than later.

Can you afford to rely on basic State pension benefits? Currently the full Basic State Pension is just over £15.00 a day for a single person*.

One of the most tax efficient ways of saving for retirement is to use a pension. Royal Mail Group and Post Office Limited (in conjunction with the Trustees) have set up the Royal Mail Defined Contribution Plan (the Plan), through Zurich Assurance Ltd, to help you build up funds to provide an income in retirement.

Start early

The longer you delay saving for your pension, the more you will need to pay later on and the smaller your savings may be. The more you save, the bigger the value of your pension is likely to be.

The table below shows the impact, in terms of the increasing monthly contribution needed to provide a pension fund of £100,000 at age 65, starting contributions at ages 30, 35, 40 and 45. It assumes that on average your investments will grow by 5% each year, after the effect of any charges or taxation.

The actual growth achieved may be greater or less than this example. This is purely for illustrative purposes.